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Forbes
08-07-2025
- Business
- Forbes
Customers Are Already Demanding AI Security. Are You Listening?
AI Data Security There was a time when companies decided how data was collected and used, with little input from the people it came from. That time has passed. Customers are asking sharper questions, expecting accountability, and making choices based on how much they trust the organizations they engage with. Cisco's 2024 Consumer Privacy Survey reflects this shift, with 75% of consumers saying they won't buy from companies they don't trust with their data. More than half have already changed providers because of privacy concerns. In addition, 78% expect AI to be used responsibly. These numbers reflect a change in how people evaluate businesses and therefore, a significant impact on a company's bottom line. Recent findings from Prosper Insights & Analytics reinforce that sentiment. When asked about concerns related to AI, 39% of adults said the technology needs more human oversight. Another 32% pointed to a lack of transparency, and more than a quarter were concerned about AI making incorrect decisions. Respondents also cited fears around job displacement and algorithmic bias, highlighting the demand for responsible AI is rooted in both practical fears and ethical expectations. People want systems they can understand, challenge and trust. Prosper - Concerns About Recent Developments in AI For organizations investing in AI, this change affects how technology decisions are made and how success is measured. AI systems increasingly play a role in customer-facing experiences, whether they're used to deliver product recommendations, support decisions or streamline transactions. These systems operate on personal data and are often judged by the quality of those interactions. That means trust, reliability and transparency have become just as important as accuracy or speed. The security environment is evolving in parallel. New risks are emerging as AI systems become more advanced. Vulnerabilities like model inversion, adversarial prompts and data poisoning create entry points for attackers that didn't exist with traditional software. Appknox recently conducted security reviews of AI-driven apps Perplexity and Deepseek and found issues ranging from weak network configurations to lax authentication and insufficient privacy protections. These findings underscore how new technology introduces new exposure and how security needs to evolve alongside capability. Internally, IT teams are feeling this pressure as they weigh the risks of adoption against the demands of innovation. A ShareGate survey of 650 professionals across North America and Europe showed that 57% of those exploring or deploying Microsoft Copilot identified security and access management as top concerns. Another 57% flagged data retention and quality as areas that needed improvement. These responses suggest that building the right foundation for trust is more important than building models or writing policies. That foundation can be difficult to establish when usage and understanding vary widely across the organization. According to a recent Prosper Insights & Analytics survey, 44% of executives already use generative AI tools like ChatGPT and Copilot, while only 27% of employees report the same. An additional 32% of employees said they've heard of these tools but don't understand them. This gap in experience and understanding introduces operational risk, especially when AI tools are adopted faster than organizations can educate and align their teams. Prosper - Heard of Generative AI Customers are paying attention to how companies approach this. Cisco's research shows that awareness of privacy laws has grown significantly in recent years. More than half of consumers say they are now familiar with their data rights. People are reviewing how their information is used, adjusting settings and opting out when they feel companies don't offer enough control or clarity. This level of engagement shows that trust must be earned, not assumed. Prosper Insights & Analytics data further reinforces this, with 59% of respondents reporting that they are either extremely or very concerned about their privacy being violated by AI systems. These findings reflect a deep emotional undercurrent that companies must take seriously if they want customers to stay engaged and confident in their use of AI-enabled services. Prosper - How Concerned are You About Privacy Being Violated From AI Using Your Data In healthcare, the importance of trust becomes even more pronounced. A recent Iris Telehealth survey found that 70% of respondents had concerns about how their mental health data would be protected when using AI-powered tools. When asked what would influence their trust, people pointed to clear explanations, strong encryption, collaboration with licensed professionals and systems that make it easy to shift from AI assistance to human care. Technology needs to be effective, but understandable and respectful of user autonomy. That expectation extends beyond healthcare. In any industry where AI interacts with customers, explainability matters. Business leaders are seeing that even well-functioning systems can lose credibility if their logic and purpose aren't communicated clearly. The case of Amazon's AI recruiting tool, which was found to disadvantage female applicants due to biased training data, remains a cautionary example. The company ultimately pulled the system, but the incident left a lasting impression of what happens when organizations overlook the importance of oversight and transparency. Responsible AI should reflect how companies see their role in the broader ecosystem of data, ethics, and service. Customers are forming opinions based on whether companies appear to handle information responsibly, communicate honestly and design technology in ways that respect the people who use it. Even simple measures like minimizing how long personal data is stored can signal that a business takes privacy seriously. Those efforts will soon be measured against evolving regulatory frameworks. The EU's AI Act introduces new requirements around transparency and risk management, especially for high-impact systems. In the US, emerging privacy laws are raising expectations across sectors. These legal changes reflect a growing belief that companies need to be more deliberate about how AI systems are developed and deployed. 'AI is evolving fast, but trust moves slower. Businesses need to meet regulatory expectations today while building systems flexible enough to meet tomorrow's. That means aligning with GDPR and the AI Act now, but also investing in explainability, continuous monitoring and ethical review processes. That's how you stay compliant and competitive,' said Bill Hastings, CISO, Language I/O. Many businesses are acting now rather than waiting for regulation. Some are embedding privacy-by-design principles into their development cycles. Others are producing clear AI usage policies and making transparency reports available to customers. Internal education is becoming more common too, with teams working to ensure employees understand how AI tools work and how to use them responsibly. 'Securing AI starts with visibility,' added Hastings. 'You can't protect what you don't fully understand, so begin by mapping where AI is being used, what data it touches and how decisions are made. From there, build in access controls, auditing and explainability features from day one. Trust grows when systems are designed to be clear, not just clever.' Doing this well often requires cross-functional coordination. Security, legal, product and compliance teams must work together from the start, not just at review points. Vendor evaluation processes need to include questions about AI ethics and security posture. Technical audits should examine how models behave under real-world conditions, including how they handle edge cases or unexpected inputs. This level of care goes beyond basic risk avoidance to shaping how customers perceive the entire relationship. Businesses that take the time to explain what their AI systems do, how decisions are made and how information is protected are showing customers they deserve their trust. These are the companies that build deeper loyalty and differentiate themselves in markets where products and services can otherwise feel interchangeable. Trust builds slowly through a pattern of responsible choices, clear communication, and consistent follow-through. AI is a powerful tool, but it works best in the hands of teams that treat security and ethics as shared values, not as checklists. As the landscape continues to evolve, the companies that earn lasting trust will be the ones that take the time to build systems and relationships that are meant to last.
Forbes
24-06-2025
- Business
- Forbes
Loyalty Programs Are Broken — Blockchain Is The Solution
Loyalty programs For years, loyalty programs promised sustained customer relationships and revenue. Yet, anyone who's navigated labyrinthine redemption portals or seen points expire knows the truth: traditional loyalty programs are fundamentally broken. The flaws are clear. Engagement rates are shockingly low. A recent Capital One Shopping report indicates that while the average U.S. consumer is enrolled in 19 loyalty programs, active participation is only around 49%. This suggests nearly half of the memberships are dormant, failing their core purpose. Furthermore, industry estimates reveal hundreds of billions in unredeemed loyalty points globally, a stark testament to illiquid loyalty currencies and program inefficiencies. Consumers also face fragmented points systems that restrict redemption to a single brand, or limited, unappealing catalogs. Lack of transparency around point value and expiration breeds mistrust. Centralized systems result in low program interoperability, and high operational costs often erode the very profits they aim to boost. Beyond just active engagement, basic enrollment also presents a mixed picture. According to a recent Prosper Insights & Analytics survey, while overall participation in customer loyalty programs averages about 50% across all generations, there are significant differences. Boomers show the highest participation (approximately 58%), while Gen-Z has the lowest (about 45%). This generational disparity, combined with widespread low active engagement, exposes the limitations of fragmented, legacy systems. Prosper - Customer Loyalty Programs Blockchain: The Solution This is where blockchain technology emerges, not as a fleeting trend, but as a genuine fix for these systemic issues. By decentralizing loyalty programs, blockchain offers unparalleled transparency, flexibility, and security, cultivating an environment where loyalty can truly flourish. Imagine a future where your airline miles seamlessly convert into points for your daily coffee, a streaming service, or even become exchangeable for other digital assets. This is the core promise of blockchain-based loyalty: points become liquid, valuable digital assets that users genuinely use like money. Say goodbye to forgotten or unredeemable points. One of the most compelling aspects is enhanced transparency. Every transaction, from earning to redeeming, is immutably recorded on a distributed ledger. This eliminates doubts about hidden rules or point depreciation. For brands, this drastically reduces fraud, as all transactions are verifiable and tamper-proof. Blockchain's immutability ensures earned loyalty points are secure, fostering unprecedented trust. Crucially, blockchain's architecture can also deliver real-time, transparent data insights for brands without compromising user privacy. Instead of centralized PII storage, blockchain solutions can leverage anonymized or pseudonymized data. This provides aggregate behavioral patterns, allowing brands to understand customer preferences and tailor offers effectively, all while adhering to strict data protection regulations like GDPR. Gabriele Giancola, founder of qiibee, a pioneering blockchain loyalty solution, highlights this dual benefit. "The true value of blockchain for loyalty," Giancola states, "lies in its ability to empower both sides. Consumers gain instant points liquidity and flexibility over their earned value, while brands acquire real-time insights into customer behavior and campaign effectiveness, all within a privacy-preserving framework. It's a shift from fragmented silos to an interconnected, value-driven ecosystem where everyone thrives." Navigating Regulations and Adoption The path to widespread adoption involves addressing regulatory complexities and practical challenges. The evolving landscape for digital assets, particularly regarding their classification, demands meticulous consideration. Companies implementing blockchain loyalty must ensure compliance with relevant financial, consumer protection, and data privacy frameworks across various jurisdictions, often requiring specialized legal guidance. Moreover, mass adoption hinges on user-friendliness. Consumers prioritize seamless, rewarding experiences. This means intuitive interfaces, frictionless earning and redemption, and immediately evident benefits are paramount. Robust, scalable solutions are therefore essential for success. Giancola adds, "For blockchain loyalty to truly go mainstream, it must feel as effortless as a tap of a credit card but deliver value far beyond it. The underlying tech must be invisible; the benefits, undeniable." qiibee: A Real-World Blockchain Solution qiibee is actively bridging this gap. By providing a decentralized, enterprise-grade blockchain infrastructure, qiibee empowers brands to tokenize their loyalty points, transforming them into valuable digital assets. This fundamentally redefines the brand-consumer relationship. Here's how qiibee's blockchain-based solutions tackle common issues: Success Stories: Brands Leading the Charge Several prominent brands are already leveraging blockchain loyalty solutions, demonstrating tangible benefits and paving the way for broader adoption. Consider Miles & More, a leading airline loyalty program. Their exploration of blockchain-based loyalty signals a progressive approach to enhancing flexibility. Similarly, Moda Health has investigated how blockchain can revolutionize health and wellness incentives. These examples, though specific implementation details with qiibee are part of ongoing advancements, underscore a clear trend towards dynamic, blockchain-powered loyalty programs. Furthermore, innovative platforms like Starbucks Odyssey utilize NFTs as a loyalty mechanism, providing unique digital collectibles that unlock exclusive real-world experiences. Similarly, Nike's .SWOOSH platform integrates Web3 to forge a new dimension of brand interaction and loyalty through virtual products and digital experiences. These instances highlight a growing recognition: genuine loyalty in the digital era demands innovation, transparency, and a true transfer of value and ownership to the consumer. The Future of Loyalty The limitations of traditional loyalty programs are increasingly evident. Blockchain technology offers a robust, secure, and transparent framework to revitalize these programs, transforming them from mere discount schemes into dynamic, interconnected ecosystems of real value. For forward-thinking brands, embracing this shift is not just an option—it's an imperative for cultivating lasting customer relationships. The broken model of yesterday is yielding to the blockchain-powered solution of tomorrow, promising a more engaged, rewarded, and loyal customer base. For users the most compelling aspect, is actually that they points are more liquid and valuable because there is a higher program interoperability, means consumers have more options to earn, spend and convert their points This can be done, but is not the best use case. Storing all transactions related to the loyalty currencies by tokenising points, is actually the most valuable use case This is also how then brands can check in an anonymous way the earning and spending behavior of a certain wallet and understand the consumers better
Yahoo
15-06-2025
- Business
- Yahoo
Father's Day hits record sales high
With Father's Day just around the corner, Americans are projected to spend a record $24 billion on dads and father figures this year, per survey data from the National Retail Federation (NRF) and Prosper Insights & Analytics. That's up from $22.4 billion in 2024 and the prior peak of $22.9 billion in 2023. Shoppers plan to shell out an average of $199.38 per person, nearly $10 more than in 2024, with the 35–44 age group leading the charge at an average of $278.90. Father's Day gifting is evolving: while 58% of consumers still buy greeting cards, many are opting for more meaningful presents. 55% will purchase clothing, 53% special outings, and 50% gift cards. Experience-driven gifts continue to gain momentum: 43% plan subscription boxes (up from 34% in 2019) 30% intend to give experiences like concert tickets (up from 23% in 2019) 'As consumers prioritize Father's Day gifts that are unique or create special memories, categories such as special outings and personal care items have seen an increase in popularity this year,' said Phil Rist, EVP of Strategy at Prosper. 'A special outing offers an opportunity to create new memories and celebrate together, while a personal care item allows dad to feel pampered.' Online shopping continues to lead, with 41% of purchases made digitally. Department stores follow at 35%, discount and specialty stores at 23–22%, and 19% shop in local or small businesses. 'Americans are embracing meaningful traditions and holidays, and this Father's Day, spending on gifts and other holiday items is expected to reach record levels,' said Katherine Cullen, VP of Industry and Consumer Insights at NRF. 'As consumers look to recognize the father figures in their lives, retailers are prepared with gift ideas, special deals and convenient shopping options to help customers find the right gifts.' Held on Sunday, June 15, Father's Day 2025 will likely mark a milestone for both heartfelt celebrations and retail success.
